February 2024 Producer Price Index

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

The Producer Price Index for final demand rose 0.6 percent in February, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices increased 0.3 percent in January and edged down 0.1 percent in December 2023. (See table A.) On an unadjusted basis, the final demand index advanced 1.6 percent for the 12 months ended in February, the largest rise since moving up 1.8 percent for the 12 months ended September 2023.

In February, nearly two-thirds of the rise in final demand prices can be traced to the index for final demand goods, which advanced 1.2 percent. Prices for final demand services moved up 0.3 percent.

The index for final demand less foods, energy, and trade services increased 0.4 percent in February after rising 0.6 percent in January. For the 12 months ended in February, prices for final demand less foods, energy, and trade services moved up 2.8 percent.

Final Demand

Final demand goods: Prices for final demand goods advanced 1.2 percent in February, the largest increase since moving up 1.7 percent in August 2023. Nearly 70 percent of the broad-based rise in February can be attributed to the index for final demand energy, which jumped 4.4 percent. Prices for final demand goods less foods and energy and for final demand foods also increased, moving up 0.3 percent and 1.0 percent, respectively.

Product detail: One-third of the February advance in the index for final demand goods can be traced to a 6.8-percent increase in prices for gasoline. The indexes for diesel fuel, chicken eggs, jet fuel, beef and veal, and tobacco products also rose. Conversely, prices for hay, hayseeds, and oilseeds decreased 8.3 percent. The indexes for iron and steel scrap and for asphalt also fell. (See table 2.)

Final demand services: Prices for final demand services moved up 0.3 percent in February after rising 0.5 percent in January. Leading the February increase, the index for final demand services less trade, transportation, and warehousing advanced 0.5 percent. Prices for final demand transportation and warehousing services rose 0.9 percent. In contrast, margins for final demand trade services declined 0.3 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Product detail: A quarter of the February increase in the index for final demand services can be attributed to a 3.8-percent rise in prices for traveler accommodation services. The indexes for outpatient care (partial); airline passenger services; loan services (partial); securities brokerage, dealing, and investment advice; and alcohol retailing also moved up. Conversely, margins for chemicals and allied products wholesaling fell 6.4 percent. The indexes for automobiles and parts retailing and for services related to securities brokerage and dealing (partial) also decreased.

Intermediate Demand by Commodity Type

Within intermediate demand in February, prices for processed goods rose 1.6 percent, the index for unprocessed goods increased 1.2 percent, and prices for services edged up 0.1 percent. (See tables B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate demand advanced 1.6 percent in February, the largest rise since moving up 2.0 percent in August 2023. Three-fourths of the broad-based increase in February can be traced to prices for processed energy goods, which jumped 6.2 percent. The indexes for processed materials less foods and energy and for processed foods and feeds also rose, 0.5 percent and 0.3 percent, respectively. For the 12 months ended in February, prices for processed goods for intermediate demand declined 1.8 percent.

Product detail: Over 40 percent of the February increase in the index for processed goods for intermediate demand is attributable to a 15.9-percent jump in prices for diesel fuel. The indexes for gasoline, commercial electric power, basic organic chemicals, jet fuel, and natural gas to electric utilities also moved higher. In contrast, prices for prepared animal feeds fell 2.3 percent. The indexes for asphalt and for inedible fats and oils also decreased.

Unprocessed goods for intermediate demand: In February, the index for unprocessed goods for intermediate demand moved up 1.2 percent following a 1.4-percent advance in January. Leading the February increase, prices for unprocessed energy materials rose 3.6 percent. The index for unprocessed foodstuffs and feedstuffs climbed 0.8 percent. Conversely, prices for unprocessed nonfood materials less energy fell 1.9 percent. For the 12 months ended in February, the index for unprocessed goods for intermediate demand dropped 8.3 percent.

Product detail: A major factor in the February increase in prices for unprocessed goods for intermediate demand was a 7.5-percent rise in the index for crude petroleum. Prices for livestock, ungraded chicken eggs, slaughter chickens, raw cotton, and fresh vegetables (except potatoes) also moved higher. In contrast, the index for iron and steel scrap decreased 4.4 percent. Prices for grains and for natural gas also fell.

Services for intermediate demand: Prices for services for intermediate demand inched up 0.1 percent in February after rising 0.7 percent in January. The February advance was led by a 1.1- percent increase in the index for transportation and warehousing services for intermediate demand. Prices for services less trade, transportation, and warehousing for intermediate demand edged up 0.1 percent. Conversely, margins for trade services for intermediate demand fell 0.5 percent. For the 12 months ended in February, the index for services for intermediate demand rose 3.2 percent.

Product detail: A 7.1-percent increase in the index for arrangement of freight and cargo transportation was a major factor in the February advance in prices for services for intermediate demand. The indexes for loan services (partial); securities brokerage, dealing, and investment advice; courier, messenger, and U.S. postal services; and food and alcohol wholesaling also moved higher. In contrast, margins for chemicals and allied products wholesaling decreased 6.4 percent. Prices for gross rents for retail properties, services related to securities brokerage and dealing (partial), and freight forwarding also declined.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: The index for stage 4 intermediate demand moved up 0.2 percent in February, the fourth consecutive advance. In February, prices for total goods inputs to stage 4 intermediate demand rose 0.6 percent. Conversely, the index for total services inputs fell 0.2 percent. (See table D.) Increasing prices for diesel fuel; securities brokerage, dealing, and investment advice; loan services (partial); gasoline; commercial electric power; and medicinal and botanical chemicals outweighed declines in the indexes for gross rents for retail properties, chemicals and allied products wholesaling, and grains. For the 12 months ended in February, prices for stage 4 intermediate demand advanced 1.8 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand rose 1.1 percent in February, the largest increase since a 1.9-percent advance in May 2022. In February, prices for total goods inputs to stage 3 intermediate demand jumped 2.4 percent, and the index for total services inputs inched up 0.1 percent. Higher prices for diesel fuel, livestock, jet fuel, ungraded chicken eggs, arrangement of freight and cargo transportation, and loan services (partial) outweighed declines in the indexes for grains, cable network advertising time sales, and chemicals and allied products wholesaling. For the 12 months ended in February, prices for stage 3 intermediate demand decreased 0.9 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand moved up 0.9 percent in February following a 1.0-percent increase in January. In February, prices for total goods inputs to stage 2 intermediate demand jumped 1.1 percent, and the index for total services inputs rose 0.7 percent. Advancing prices for crude petroleum, loan services (partial), arrangement of freight and cargo transportation, basic organic chemicals, broadcast and network television advertising time sales, and liquified petroleum gas outweighed declines in the indexes for natural gas, oilseeds, and chemicals and allied products wholesaling. For the 12 months ended in February, prices for stage 2 intermediate demand fell 0.8 percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand rose 0.7 percent in February after advancing 0.3 percent in January. In February, prices for total goods inputs to stage 1 intermediate demand jumped 1.4 percent, while the index for total services inputs was unchanged. Increasing prices for diesel fuel; basic organic chemicals; securities brokerage, dealing, and investment advice; traveler accommodation services; natural gas to electric utilities; and gasoline outweighed declines in the indexes for gross rents for retail properties, chemicals and allied products wholesaling, and grains. For the 12 months ended in February, prices for stage 1 intermediate demand moved up 0.3 percent, the first advance since rising 0.7 percent for the 12 months ended March 2023.

Resampling of Industries - February 2024

Effective with the release of data for February 2024, the Producer Price Index (PPI) includes data for 8 resampled industries classified according to the 2022 North American Industry Classification System (NAICS). The Bureau of Labor Statistics periodically updates the sample of producers providing data for the PPI to reflect current conditions more accurately when the structure, membership, technology, or product mix of an industry shifts. The first results of this systematic process were published in July 1986. Subsequent efforts have been completed at regular intervals.

For information on index additions, deletions, and recodes effective February 2024, see the current issue of the PPI Detailed Report online at www.bls.gov/ppi/detailed-report/ppi-detailed- report-february-2024.pdf, or contact the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.

NAICS Code Industry 312111 Soft drink manufacturing 314910 Textile bag and canvas mills 327992 Ground or treated minerals and earths manufacturing 332119 Other metal stamping, except automotive 333996 Fluid power pump and motor manufacturing 336213 Motor home manufacturing 457210 Fuel dealers 561612 Security guards and patrol services